I love the holidays. The music, the festivities, the hot chocolate, the memories. I could go on… but I am so busy that sometimes I miss out on a lot of these things or do not take the time to appreciate them fully. Do you ever feel that way?
The holidays can get very busy, and that can cause stress and strained relationships, which can lead to financial problems (see this post on why that is). So I wanted to take just a second to remind you to take some time to take a breather. Stop for a few minutes and really think about what it is you are doing and why it is important. If you are sharing a holiday meal with family, look around and take in the faces of those around the table. Remember why they are important to you and be sure you let them know you are glad to be there.
You could also plan some time to take a breath and enjoy the holidays. In all the hustle and bustle of planning shopping, holiday parties, gift wrapping, etc. you could go ahead and pencil in some time for yourself. Perhaps you enjoy baking. Why not clear out an afternoon and spend that time teaching your daughter how to make Grandma’s gingerbread cookies. You will be developing a relationship and memories that will last a lifetime, and that is far more important than making sure to be first in line to get the latest new gadget just in time for Christmas.
Another thing to remember during this time is to stick to your budget, and make sure that you and your spouse are both involved in the budget planning. He may budget $50 on gifts, but you may spend $500, and then you wind up fighting. But if you both know up front what the expectations are and what you can afford, then stick with it, you will end up getting to enjoy each other much more. Yes, it can still take some discussion to reach those numbers, but remember that you are both on the same team and talk it through with respect for each other.
So remember what is truly important to you, sit back for a little bit, and take a breath. Think about what this season is really about and enjoy it.
Tags: Christmas, financial problems
How many times have you heard that you should be putting aside at least $50 or $100 a month into your savings account? And how many times have you been frustrated, either thinking that there is no way you can come up with that much or wondering if it should be a savings account or money market or a CD?
There really is no magic number of how much money you should be saving each month. Yes, you should be saving, but when and how much really depends on your own personal financial situation and goals. If you are burdened with debt, it does not make any sense to be socking away as much as you can and getting 1% interest at the bank or even 5% on your stocks when you are paying 10% interest on your car or 17% on your credit card. You will end up losing money that way. In recent times people have started taking money out of their retirement plans to pay off debt and are incurring huge penalties of up to 40% for doing so. It is best to focus on getting rid of that debt first so you do not jeapordize your future.
That said, you should not be putting all your money into your debt and have nothing saved up for rainy days or emergencies. You do need to put together a plan and a budget so that you can both get your debt paid down and have money available for those things that come up so that you do not land further in debt (i.e. we all know that cars need repairs from time to time, so if you save up now then when you need the money you will have it).
As you put your budget in place, you can also think of ways to generate more income to get out of debt and start saving. Perhaps it means getting a second part-time job or finding something like walking a dog or babysitting to bring in some extra cash. It could be that you have a particular skill that you could teach others and earn some money. See my article on generating alternate income for more information. The idea is that as you work on budgeting and controlling your spending, adding extra income will help you to pay down debt and then start putting money into savings and eventually into your investments (IRA, stocks, etc.).
So while there is no absolute number for how much money you should be saving, the take-away today is that you do need to make a plan and be sure that you are getting your debt paid off and then saving according to your financial goals.
I like to save money and am constantly looking for ways to do so. Not ways to cheat the system, but legitimate ways to save money. One thing I have discovered is that if you are vigilant you can save a ton, but you have to keep an eye out to do so.
For example, our Internet/Cable bill fluctuates all the time. The reason is that we have been calling every few months for the past few years to see what current deals or promotions can be applied to our account. If you haven’t done this, it is a good way to save some money. These companies have deals for current customers that they can add on, but they do not advertise these savings openly most of the time. The problem is that it can become a hassle to keep calling every time the bill goes back up, so every couple of months for the past year or so I have been checking out other companies to see if we could get a comparable rate. Finally we got a deal in the mail from the competition for a $200 debit card for switching back to them (yes, I did change about 5 years ago to get a better deal, and yes, I think it is worth the hassle of switching back). Between the $200 plus the price we are getting to lock in a 2-year contract, PLUS the fact I will not have to call in or do this price comparison for a while, makes switching a good deal.
Another way you can save is by periodically reviewing your insurance and cell phone bills and providers to make sure you are getting a good deal and still getting the coverage you need. If you take the initiative to do the research, you can really end up saving a significant amount of money. And you can use that money that you save for the things that are truly important to you. In a bind, that extra cash could even pay the grocery bill for a month or so. Do be mindful of things like early cancellation fees if you are under a contract. Cell phone providers tend to have hefty fees that make waiting until the end of a contract the best route to take.
And you may find that automatic bill pay is a great way to free up some space in your brain to think about other things, but one of the ways that overbilling mistakes can easily be missed is through bill pay. Sure, you may be used to seeing the same amount withdrawn each month, but are you actually taking time to look at that bill and make sure things are correct? Are you being charged extra for a service you do not have or need? While auto bill pay is easy, be sure that you do still take the time to check out your bills to see what it is you are paying for. And do know that it is usually harder to get money back after it has been paid than to call before paying a bill to get things straightened out.
So this is my encouragement to you to be vigilant. Keep your eyes open for deals on your bills and go ahead and make phone calls to your providers to see what they can offer. You may or may not get a deal when you call, but if you don’t ask then you won’t get the deal at all. And pay attention to your bills so you know exactly what it is you are paying for at all times.
For years we at iMoneyCoach have helped people face-to-face in dealing with the issues in their lives that cause money troubles. And we have taught them how to get out of debt, how to budget successfully, how to live a life of balance where the different areas of their lives are actually helping their finances instead of hurting them, how to keep track of spending, and so much more.
But we knew that we needed to branch out in our journey of helping people become successful with their money. There were many people who are so busy with their work, children, and other commitments, that they did not have time to meet in the office with us. There are also people who feel embarrassed by their financial situation and do not want to face someone with their problems. There are spouses who argue all the time and do not make the commitment to visit us together to work on their financial (and marital) issues.
So we spent a long time compiling everything we do in our face-to-face coaching sessions and building online courses that will still bring the success that we have seen our clients attain. But these courses are offered online, opening up a whole new world of convenience, lower cost, privacy, and the ability for spouses to work together on their finances. Now people can take these courses when it is most convenient for them. If it is best to think about money at 8pm when our offices are closed, now people have the option of logging in and working on the course at that time instead.
What makes our courses special? We know that not everyone learns in the same way. Some are more visual while others are more auditory, while yet others learn best kinetically (doing). So not only did we work to make our courses a fun and engaging learning tool, but we added videos and images for our visual learners, full narration for our auditory group, and several quizzes and worksheets for our kinetic learners. We are positive that these courses can be useful to you no matter what your learning style.
So if you want to learn how to get out of debt while sitting in your jammies or figure out how to make a budget without eliminating every ounce of fun after putting the kids to bed, now you can. If you want to discover the secret to never fighting about money again, you and your spouse can sit down together and find it here (or you can find it first and then let your spouse think it is his/her idea to go through the courses so you can get on the same page). No matter your schedule or situation, we want you to be able to use our financial tools when it is convenient for you and to be successful with your finances. So head over to the iMoneyCoach University today to see what the courses are all about.
Tags: online finance courses, successful
No doubt you have heard the phrase “keeping up with the Joneses.” This idiom has been around for decades and it refers to comparing oneself or one’s family to a neighbor or idea of someone who is doing better or keeping up a higher socioeconomic status.
When you watch TV these days you have to think that the Joneses must be doing pretty good for themselves. New cars, new iPhones and iPads, bigger and better vacations, houses, refrigerators, washing machines, delectable meals out at fancy restaurants… you name it, they have it.
But do you ever stop to think whether the Joneses, whoever they may be, can truly afford to keep up with themselves? And if you have someone in mind who seems to be doing very good for himself, have you considered whether he can really keep up with his spending? On TV commercials, the families that are portrayed would have to have an average discretionary budget (meaning their income after taxes, insurance, house payments) of over $200,000. Wow! The median (midpoint) household income in America in 2012 is $50,054.15 according to the Huffington Post. That is only ¼ of what it would take to be able to keep up with the TV advertisements that leave us always wanting more.
So how can they keep up? The simple answer is: they can’t. They are probably knee-deep or even neck-deep or underwater in debt. The average household carries over $15,000 in credit card debt (source is creditcards.com. With that much debt, it is impossible to truly own that nice car and fancy clothes outright for the average person in our country. In our country people used to take pride in ownership of things like their houses and cars. That was in a time when the majority of people truly owned those things, not the bank. These days the bank can repossess those items if you fail to make a payment. They don’t really belong to us, and so we have set up this fake reality, showing off our “cool” things to be admired by others and admiring their latest gadgets, while what we are really doing is setting ourselves up for a big fall.
What do we do then? The first thing is to stop trying to keep up. If the Joneses can’t even keep up with themselves, then it is not worth it. And do you really need all those things to feel worthy? Instead of the latest, hottest designs, do you think you could shop at a different store, even a Walmart or thrift store, and find something that you look good in without spending a small fortune? Do you think that instead of rushing out to buy the latest new phone, your old phone (yes, the “old” one you bought last summer) could last a little while longer? After all, it does make calls, and you can listen to music on it, check your email and Facebook, and take pictures still.
That takes us to the second step. Once you have stopped focusing on how Mr. Jones is doing and start looking at yourself, and this does take practice and time to feel comfortable with it, then you can work on a budget. Yikes, not the “B” word! Ah yes, a budget. It is not as scary or complicated as you think. In fact, it is quite empowering. When you create a budget, you can keep track of how much money you are bringing into your household and how much you are spending. It can help you say no to those items you just don’t need that have for so long been dragging you down into the depths of debt. It gives you something to be proud of. When you get your spending under control and down to less than you are earning, you can revel in that accomplishment and enjoy the knowledge that you really and truly own the things you own. The bank cannot come take them away at any minute. They are yours.
I would encourage you to get started on a budget today. If you have tried in the past and failed, do not give up hope. Try again. It is absolutely worth your future and your happiness. Let’s start turning things around in our country so that we can once again enjoy financial success and freedom.
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